Anjali Sastry and colleagues - MIT OpenCourseWare€¦ · · 2018-03-02Anjali Sastry and...

GlobalHealth Lab class 8 Health

commodities and

their distribution

Spring 2013 Anjali Sastry

and colleagues 1

Plan for today

• Quick live survey – Host status: Your one-word description of how things stand – Equipment check-in today with DH: BRAC, CIDRZ, Gradian, GS Memorial,

LifeSpring, Shining Hope, Unjani, Western Cape

• Review last week’s sessions – Takeaways from discussion

• Case analysis – What are the goals? – How does LG accomplish them? – Your assessment? – Lessons, links to our projects

• Coming up – Mentor meetings this week – Finalizing interim studies, annotated bibliographies – Packing list, photo and video notes

2

How do things stand with your host, IN ONE WORD?

1. BRAC

2. Unjani

3. Riders

4. Daktari

5. Lifespring

6. Western Cape

7. LVPEI

8. CIDRZ

9. Himalayan HealthCare

10.GS Memorial

11.Gradian

12.Shining Hope

3

Living Goods: Measures

Living Goods tracks the performance by month and updates stakeholders quarterly updates on : • Pregnancies supported per agent per month • % of deliveries in a facility with a skilled attendant • % of newborns visited in the first 48 hours by an agent • # of under-5 malaria treatments per agent • # of under-5 diarrhea treatments per agent • % of malaria and diarrhea treatments followed up • % of high-impact items in stock • Sales per agent • Sales per branch • Branch profitability

4

Sustainability strategy

• Leveraging existing resources, assets, and partnerships wherever possible;

• Creating buying power at the retail level and building significant scale economies;

• Bypassing middlemen in the existing distribution chain;

• Maintaining rigorous cost discipline;

• Focusing obsessively on the productivity and livelihoods of sales agents

5

Map of Living Goods locations removed due to copyright restrictions.

Source: Living Goods. "Where We Work."

6

http://livinggoods.org/what-we-do/where-we-work2/

T E A M M E M B E R S :

V I S H A L G U P TA

J E N N Y H U

K E V I N K U N G

AW I L D A M E N D E Z

Living Goods

7

Courtesy of Vishal Gupta, Jenny Hu, Kevin Kung, and Awilda Mendez. Used with permission. Creative Commons BY-NC-SA.

Agenda

Vision

Context

Business Model

Tradeoffs

Leadership Initiatives

8


Vision

The Entrepreneurial Solution for Defeating the Diseases of Poverty

Reinvent village healthcare and micro retailing in the developing world,

Through networks of franchised micro entrepreneurs,

Who bring high quality products to poor consumers at significantly lower cost.

Vision Context

Business Model

Tradeoff Leadership Initiatives

9


Context

• Nearly 20,000 people

die every day in developing countries for want of basic medicines that cost less than a cup of coffee.

• This list of diseases account for nearly 70% of childhood illness and death in Africa.

Vision Context Business Model

Tradeoff Leadership Initiatives

Target Diseases Yearly Deaths

Malaria 1,300,000

Micro-nutrient Deficiency 2,000,000

Diarrhea Diseases 1,800,000

Respiratory Infections 3,900,000

TOTAL 9,000,000

10


Avon Model Inspiration Design

Vision Context Business

Model Tradeoff


Brac Partner Branches (24)

LG Direct Branches (4)

CHPs (480) CHPs (140)

Rural/Peri-Urban Markets $0.50-$2.00/day

Business in a Bag

Products

Living Goods

11



Model Tradeoffs


12

Photograph of Living Goods kit removed due to copyright restrictions.

The Living Goods Health Business in a Bag

Product Offering


Model Tradeoff


13

Courtesy of Molly Christiansen. Used with permission.

Avon Model Inspiration Design

Lean Supply Chain, Tight Information Loops, Cash Flow


Model Tradeoff



CHPs (480) CHPs (140)

Rural/Peri-Urban Markets $0.50-$2.00/day

Business in a Bag

Products

Living Goods


14


Value Proposition Model


CHPs (480)


CHPs (140)

Rural/Peri-Urban Markets

Manufacturer (e.g. P&G)

National Distributor

Regional Distributor

Local Distributor

Rural Seller


Model Tradeoff


Living Goods

15


Value Proposition Model


Model Tradeoff


CHPs (480)


CHPs (140)

Rural/Peri - Urban Markets

Manufacturer

- Buying power

- Optimizes density of agents

- LG prices average 30% lower than market

- Products delivered directly to consumer

- Managing frequency of stock - outs, counterfeits


Living Goods

16


Cash Flow Model

LG Direct Branches

CHPs ($75)

CHPs ($125)


Donor Capital

Inventory Restock

Sales

Micro-financing


Model Tradeoff



Living Goods

Brac

17


Cash Flow Model

LG Direct Branches

CHPs ($75)

CHPs ($125)


Donor Capital

-CHPs retain 20% of sales

-Average monthly income $75/$125

-Targeting sustainability within five years

Simple Cash Flow Loop


Model Tradeoff



Living Goods

18


Information Loop

Quantitative monitoring of information is part of the model


Model Tradeoff


LG Direct Branches

CHPs CHPs

Rural/Peri - Urban

Markets

- Initial training covers market data collection

- 1 week review training/Yr

- Monthly coaching sessions


Living Goods

Abdul Latif Jameel Poverty Action Lab

19


Adaptability + tailor to local needs + capturing niche markets + sense of franchise ownership + resilient to price fluctuations + learning/improving/experimenting

Uniformity product quality control +

branding + bulk purchasing power +

simplified/measurable standards +

Tradeoff: Adaptability vs. Uniformity


Model Tradeoff Leadership Initiatives

VisionSpring

SmileTrain Mi Farmacita Riders

Living Goods

CFWshops

20


Independence + operations management + identity + quality control

Partnership using on existing infrastructure (“lean”) +

reduced overhead costs + distributed risk +

potential to scale up +

Tradeoff: Independence vs. Partnership

Vision Context Business Model Tradeoff Leadership Initiatives

Mi Farmacita VisionSpring

SmileTrain

Living Goods CFWshops

Riders

loveLife

21


Empowering women

Delivering health care

+

+

Expansion

Training Procurement Monitoring

RA

RT RD

RA + RT + RD = Given resources (constrained)

Tradeoff: Prioritizing Goals

Vision Context Business Model Tradeoffs Leadership Initiatives

Living Goods

22



Monitoring/Regulation. As we scale, Living Goods will have to find more efficient methods.

Tracking Impact. Continued and broader assessment of health and business outcomes.

Refining Core Competencies. What parts of the model do we want to own? What do we want to outsource to partners?

Vision Context Business Model Tradeoffs Leadership Initiatives

23


Living Goods & Avon: Business Model & Social Responsibility Shared Goals

A proven business-in-a-box system heavily supported with training, marketing and coaching

Low start up costs of just $100-$250 supported with simple low-cost financing, and

Flexible hours and lifestyle: Sellers can work on their own schedule and in their own communities.

“Independent earnings opportunity for women”

“Social purpose for women”

“Largest economic engine in the world is the emerging market of women”

“Women’s earnings are used to support families, access health care and education and improves personal security

“Women’s earnings are used to build and spur social progress”

Living Goods Avon

24


Appendix

25

Comparative text on BRAC-Living Goods and its wholly owned and operated network removed due to copyright restrictions.

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